Simply put the REPUBLICANS/TEABAGGERS just raised TAXES on EVERYBODY not just the top 2%

[wndycty]

This downgrade will cost interest rates to go up and for all practical purposes those responsible, the Republicans/Teabaggers, just raised taxes on everybody. But unlike taxes you and I pay for government operations, public safety, defense, education, healthcare, economic development, social services, we get no fucking benefit.

That is the story that needs to be told, over and over again.

[scheming daemons]

1. Interest rates won't go up as long as the other two ratings agencies have us at AAA

[wndycty]

2. Let's hope. . .

:kick:

[snappyturtle]

3. I hope you're correct but that's not what I've been hearing.....CNN

this morning had a report of rising interest rates with no mention of other rating agencies other than S&P.

[liberal N proud]

4. Unfortunately those so called taxes will do nothing for the dept

and they will do nothing to fund the government.

They will however make the rich, richer.

[cui bono]

5. KnR

[galloglas]

6. Except that...

the wealthy already have interest bearing assets. And these will now create higher interest yields for the wealthy.

The corporations which are now witholding cash from the economy because they are "not optimistic about the economy and consumer demand", in order to strangle the working class into submission in economic matters, will (along with the individual Plutocrati) will now be receiving tremendously increased interest points on that stashed cash. Perhaps, instead of the .1% or .2% current yield on Treasury bonds, they may go to, say, 1% to 2% yields. That is a 1000% increase in interest income!

How can they possibly lose? Even if we get rid of the Bush tax cuts, the extra interest received on deposits will more than offset them. And how likely is it that they will ever be gone??

This appears to be the biggest inside swindle, since, .. well..., ever!

[cmd]

7. They will never admit it.

They'll just blame it on liberals and get away with it.

[msongs]

8. are yo referring to the bill dems voted for and obama approved by signing? nt

[unblock]

9. this is incorrect in the sense that the treasury market already knows as much as the rating agencies

rating agency downgrades of COMPANIES cost the companies more money in the form of higher interest rates because the rating agencies actually investigate the companies and presumably have knowledge about the company's finances and projections that regular investors don't necessarily have.

so a downgrade is taken as reflecting bad news that the investing public doesn't already know. so their cost of funds go up.


but in the case of sovereign ratings, particularly for the united states, there's NOTHING the rating agencies know that the public doesn't already know. so it's really just an idle opinion. if they downgrade it enough, then some funds that, by their charter, can't invest in anything below a certain rating, will dump treasuries, and THAT would slightly affect interest rates. but that's not likely to be the case, especially if there's a perceived mismatch between the rating and the actual risk.


as it stands, treasuries are at near their unprecedented all-time historical LOWS, suggesting that american debt is hardly a risky investment.

[wndycty]

10. Monday morning kick

:kick:

[deaniac21]

11. YEAH, that's the ticket!